Rio Cristal Announces $230,000 Non-Brokered Private Placement

Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVL:RCZ) ("RCZ" or the
"Company") is pleased to announce a non-brokered private placement for total
proceeds of $230,000.


Additionally, the Company announces that certain Directors of the Company have
provided recent loans to the Company totaling $230,277. The loans are unsecured,
have a term of one year, bear annual interest of 6% and will be used for general
corporate working capital.


Thomas Findley, President and CEO, said, "The raising of additional capital in a
very difficult market together with significant corporate cost reductions will
allow the Company to meet its current obligations and to continue negotiating a
joint venture agreement with potential partners. We expect to complete a due
diligence process and a term sheet in the coming weeks with one of the
candidates. Completion of a final agreement would follow as quickly as possible
and will bring a strong partner into the Bongara zinc project and allow Rio
Cristal to focus on creating shareholder value."


Because TSXV regulations limit the participation of Directors and other insiders
to 25% of a placement under 5 cents, the placement has two parts. The first is
for 4,285,714 units (the "Units") of the Company at the price of $0.035 per
Unit; each Unit consisting of one common share (a "Share") and one
non-transferable warrant (a "first Warrant") for proceeds of $150,000. The
second is for 1,600,000 Units at a price of $0.05 per Unit, each Unit consisting
of one common share and one non-transferable warrant (a "second Warrant") for
proceeds of $80,000. The proceeds from the sale of the Units will be used for
general corporate working capital.


Each first Warrant shall entitle the holder thereof to purchase one additional
Share (a "Warrant Share") at an exercise price of $0.06 per Warrant Share for
the first year and $0.10 per Warrant Share for the second year, and is subject
to acceleration. Each second Warrant shall entitle the holder thereof to
purchase a Warrant Share at an exercise price of $0.10 per Warrant Share for two
years and is subject to acceleration. 


Commencing on the date that is four months and one day after the closing of the
private placement, if the closing price of the Company's common shares on the
TSX Venture Exchange (the "Exchange"), is at a price equal to or greater than
$0.12 for a period of ten (10) consecutive trading days, the Company will have
the right to accelerate the expiry date of all Warrants by giving written notice
to the holders of the Warrants which will then expire on the date that is not
less than thirty (30) days from the date of the notice. 


The Company may pay a finder's fee consisting of 4% cash and 8% Units in
connection with the private placement, other than in connection with any
subscriptions by insiders.


Certain directors and officers of the Company may acquire securities under the
private placement. Any such participation would be considered to be a "related
party transaction" as defined under Multilateral Instrument 61-101 ("MI
61-101"). The transaction will be exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as neither the fair market value
of any shares issued to or the consideration paid by such persons will exceed
25% of the Company's market capitalization. Loans to the Company by Directors
would also constitute related party transactions, and would be exempt from the
valuation and shareholder approval requirements of MI 61-101 for the same
reasons. 


This financing is subject to the approval of the Exchange. The Company
anticipates closing of the Offering as soon as practicable subject to receipt of
all necessary regulatory approvals.


About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on development of the
18,000 hectare Bongara zinc property in northern Peru, which includes four
separate exploration projects. The Company is also actively reviewing other
zinc, gold and copper prospects in Peru.


The Company's shares are listed on the TSX Venture Exchange and the Bolsa de
Valores de Lima (Lima Stock Exchange) under the symbol RCZ.


This news release includes certain "forward-looking information" under
applicable Canadian securities legislation, being the statements as to the
Company's discussion with other potential joint venture partners to develop the
Bongara property and a potential equity financing. There can be no assurance
such discussions will lead to a transaction (either a joint venture or a
financing), and actual results and future results, events and objectives could
differ materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from Rio Cristal's
expectations include the failure to complete a definitive agreement to develop
the Bongara property, failure to achieve regulatory approval or any other
required approvals, risks related to the Company's existing shareholders, and
risks that prospective partners or investors will not negotiate in good faith or
decide against partnering with or investing in the Company for reasons unknown
to the Company. Accordingly, you should not place undue reliance on
forward-looking information. 


This news release does not constitute an offer to sell or solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Rio Cristal Resources Corporation
Investor Relations
(604) 513-3620
(604) 513-5708 (FAX)
investor@riocristalresources.com
www.riocristalresources.com
(TSXV:RCZ)
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